Objections into Opportunities

The boundaries of debt investing are that when interest rates are on the rise, one must stay with short-duration products and when interest rates are likely to fall, one
should be in longer-duration products. When one chooses the product that is suitable to the interest rate environment and time horizons of their investment, debt funds tend to have been helpful.

Similarly, we have rolldown products for various timeframes that investors choose and match with their time horizon of investments. Debt funds are tax-efficient because the benefit of indexation is only available on debt mutual funds and not on fixed deposits.

We are happy that your business is profitable and it may be tempting to reinvest all your profits into your own business for growth. As an unintended outcome over time, your wealth would remain concentrated only in your business. It becomes difficult to earmark a particular amount for a financial goal when it is rotated in business as it takes time to liquidate the money when you need it.

While it takes blood, sweat, and tears to run a business, investing in mutual funds requires very little of your attention on a daily basis as it is handled by dedicated fund managers. Diversification of wealth is a weapon against uncertainty. That is why we suggest you invest a portion of your profits in mutual funds through SIP so that you will be able to build an alternate corpus oriented towards growth.